Alibaba just threw billions at Chinese shoppers to save the country's dying economy. The tech giant promised to hand out seven billion dollars through its Taobao shopping app over the next year. Chinese families have stopped buying stuff because they fear losing their jobs and homes. The company hopes digital cash gifts and price cuts will make people start spending again.
China's leaders are panicking about their crashing economy right before things get worse. Property values keep falling and America keeps fighting trade wars against Chinese businesses. Millions of workers face unemployment as companies shut down or move factories to other countries. The government tried cutting interest rates and offering trade deals but nothing seems to work.
Taobao plans to give away the money through red envelope apps that mimic traditional holiday gifts. Shoppers will also get discounts on delivery fees and lower prices on popular products. The subsidies target flash sales where customers buy items quickly at reduced costs. Company executives believe these deals will make consumers feel confident about making purchases again.
President Xi Jinping told his economic team to build a stronger national marketplace on Tuesday. Government officials want to stop companies from cutting prices too low and destroying each other through competition. Economists worry that deflation could spread across Asia if China cannot fix its spending problems. Retail sales did grow faster in May compared to last year but experts remain cautious about recovery chances.
China's leaders are panicking about their crashing economy right before things get worse. Property values keep falling and America keeps fighting trade wars against Chinese businesses. Millions of workers face unemployment as companies shut down or move factories to other countries. The government tried cutting interest rates and offering trade deals but nothing seems to work.
Taobao plans to give away the money through red envelope apps that mimic traditional holiday gifts. Shoppers will also get discounts on delivery fees and lower prices on popular products. The subsidies target flash sales where customers buy items quickly at reduced costs. Company executives believe these deals will make consumers feel confident about making purchases again.
President Xi Jinping told his economic team to build a stronger national marketplace on Tuesday. Government officials want to stop companies from cutting prices too low and destroying each other through competition. Economists worry that deflation could spread across Asia if China cannot fix its spending problems. Retail sales did grow faster in May compared to last year but experts remain cautious about recovery chances.
